Dollar to weaken further against euro and sterling

The dollar is likely to continue weakening, particularly versus the euro and sterling, as the Federal Reserve tries to reflate the US economy. A falling dollar is generally seen as positive for US industry as it increases export competitiveness and reduces import competition in a world of falling trade volumes, thereby boosting US corporate profits. The effect this will have on European and Asian economies may be less favourable, however. The impact of a weaker dollar on eurozone countries is broadly expected to be negative and is leading some fund managers to favour US equities ov...